It is a situation landlords hope they will never experience. Their tenant has stopped paying rent and they need to take action to mitigate the damage to their bottom line. But how does a commercial investor go about evicting a tenant who has stopped paying the rent (financial breach) or breaches the lease in another way (non-financial breach)?

1. How to terminate a
commercial lease for
non-payment of rent
or other breach.
RP Emery & Associates
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2. In most Australian states, a
Commercial Lease is used for
properties such as warehouses,
offices or factories.
The information that follows
outlines in very simple terms how
to handle a breach under Australian
Law.

3. If your tenant…
 stops paying the rent;
or
 breaches other terms
of the lease.

4.  To validly end the
lease;
 and regain possession
of your property.
You must follow the rules

5. In Australia, Leasing is
covered by state specific
legislation.
These laws give instruction
on how a Landlord should
deal with a breach.

6. In addition, your lease
contains terms that
describes how breaches
will be handled.

7. Your lease cannot undermine
the minimum standards for
dealing with breaches set out
in the legislation and case
law, but can add to them.

8. The first step is to…
Issue your tenant with
a Breach Notice that
details:
 the nature of the
breach; and

9.  requests that the
breach is remedied
within a reasonable
time.
 You can also claim
compensation if
necessary.

10. Within the given
timeframe, the
landlord can terminate
the lease in a number
of ways.
If the tenant does not comply

11.  By issuing another
notice terminating
the lease and asking
the tenant to vacate
the property;

12. By re-entry;
Leases usually include a right of re-entry allowing
the lessor to reclaim the property if the lessee
fails to abide by the terms of the lease.

13.  By initiating Court
proceedings.

14. Going to Court can be
expensive and the outcome is
often uncertain.
Increase your chances of
success by following the
leasing laws to the letter and
keeping an accurate paper
trail.

15. Interested to know more?
View a more detailed
article on handling a
breach and download a
Sample Breach Notice for
NSW from http://bit.ly/1ll2esT

16. This information in this presentation is of a general nature and does not
include or constitute legal advice.